Let the investment in each case be Rs (120 x 135)
Case (i): Income from 7% of Rs 100 shares at Rs 120
= \(\frac{7}{120}\) x 120 x 135
= 7 x 135
= Rs 945
Case (ii): Income from 8% of Rs 100 shares at Rs 135
= \(\frac{8}{135}\) x (120 x 135)
= 8 x 120
= Rs 960
∴ 8% of 100 shares at Rs 135 is better investment.
